Introduction to Business Chapter :7 Management and Leadership Spring , 2016 BRAC Business School BRAC University

Summary What is Management? Goal And Objectives Functions of Management BRAC Business School BRAC University

Management Management is the process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources. Different goals of any organization: Profit (Beximco Textiles Ltd.), Learning knowledge (BRAC University), Social security (Police) BRAC Business School BRAC University

4 basic and distinct kinds of resources are available in any organization 1.  Human Resources (Managerial talent, labor) 2.  Financial Resources (Capital in operations) 3.  Physical Resources (Raw materials, equipment) 4.  Information Resources (Information used for decision-making) BRAC Business School BRAC University

Difference between Goal and Objective Goals are the broad, long term accomplishments an organization wishes to attain. Objectives are specific, short term statements detailing how to achieve the organization’s goals. BRAC Business School BRAC University

Goals Objectives To Improve Profitability   Goals Objectives  To Improve Profitability To achieve an increase in annual net income of 22% To Improve Market Share To achieve 43% of market share for the first half of the year To Improve Employee Relation To achieve a 20% improvement in annual employee attitude survey  To Complete Project As Soon As Possible To deliver the project report by June 01

Four functions of Management Planning Organizing Leading Controlling BRAC Business School BRAC University

Planning and Decision Making Motivate/influence the employees to work Management Functions Planning and Decision Making Setting organization’s goals and decisions for actions from alternate ways Organizing Determining to use resources in best possible way Leading Motivate/influence the employees to work Controlling Comparing the estimated and actual results and correct actions for effectiveness BRAC Business School BRAC University

PLANNING Planning Setting the organization goal Developing strategies to reach those goals Determining the resources needed Setting the precise standards 3 reasons for planning To establish an overall direction for the organization’s future To identify and allocate organization’s resources To decide which tasks must be done for achieving the goals Disadvantages It is costly It is difficult BRAC Business School BRAC University

Planning answers fundamental questions What is the situation now? SWOT Analysis -- Analyzes the organization’s Strengths, Weaknesses, Opportunities and Threats. How can we get to our goal from here? Strategic planning Tactical planning Operational planning Contingency planning BRAC Business School BRAC University

Strategic and Tactical planning Strategic Planning -- Done by top management and determines the major goals of the organization and the policies, procedures, strategies and resources it will need to achieve them. Tactical Planning -- The process of developing detailed, short-term statements about what is to be done, who is to do it and how. BRAC Business School BRAC University

Operational and Contingency Planning Operational Planning -- The process of setting work standards and schedules necessary to implement the company’s tactical objectives. Contingency Planning -- The process of preparing alternative courses of action the firm can use if its primary plans don’t work out. BRAC Business School BRAC University

Planning Functions BRAC Business School BRAC University

ORGANIZING Allocating the resources, assigning tasks, and establishing the procedures to accomplishing the goal Preparing a structure (organization chart) showing lines of authority and responsibility Recruiting, hiring, motivating and retaining the best people available to accomplish the company’s objectives (staffing) BRAC Business School BRAC University

Organizational Charts Organization Chart -- A visual device that shows relationships among people and divides the organization’s work; it shows who reports to whom. BRAC Business School BRAC University

Levels of Management/Manager BRAC Business School BRAC University

Deputy Managing Director Senior Executive Vice President Chairman Board of Directors Management Commitee Managing Director Deputy Managing Director Senior Executive Vice President Executive Vice President Senior Vice President Assistant Vice President First Assistant Vice President Senior Executive Officer Executive Officer Principal Officer Senior Officer Management Trainee Officer Junior Officer Trainee Assistant Top Management Executive Level Mid-Level Management Junior Level BRAC Business School BRAC University

Levels of Management/Manager Top Management/Managers Middle Management/ Managers First line Management/ Managers Top Managers Consists of small group of executives Common title used—CEO, President, MD etc. They set goals, strategy and operating policies BRAC Business School BRAC University

Levels of Management/ Manager Middle Managers Generally, largest group in any organization Common title used— plant manager, operation manager, division head etc. Major responsibilities— implementing the policies and plans, supervising and coordinating operations of lower level managers First line Managers   Last level of managers Supervise and coordinate the activities of operating/ non management employees Common title used— supervisor, coordinator etc. Spend little or no time on planning and organizing BRAC Business School BRAC University

Tasks and Skills at Different levels of Management Skills/Tasks Technical- are the ability to perform tasks in specific discipline or department Human relation- involve communication and motivation; they enable the managers to work through and with people Conceptual- the ability to picture the org. as a whole. They are needed in planning, organizing, controlling, problem analysis, decision making, coordinating and delegating BRAC Business School BRAC University

Providing feedback on performance LEADING Guiding and motivating employees to work effectively to accomplish organizational goals Giving assignments Explaining routines Clarifying policies Providing feedback on performance BRAC Business School BRAC University

Leadership Leaders must: Communicate a vision and rally others around that vision. Establish corporate values. Promote corporate ethics. Embrace change. Stress accountability and responsibility BRAC Business School BRAC University

Leadership Styles Autocratic Leadership -- Making managerial decisions without consulting others. Participative or Democratic Leadership -- Managers and employees work together to make decisions. Free-Rein Leadership -- Managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives. BRAC Business School BRAC University

Leadership Styles Other concepts: Directing Empowerment Enabling Knowledge management BRAC Business School BRAC University

Set standards for time, quality, quantity and so on CONTROLLING Set standards for time, quality, quantity and so on Measure performance (results) Compare performance to standards Communicate the result Make necessary modifications BRAC Business School BRAC University

Five steps of Controlling BRAC Business School BRAC University

A key criterion for measurement: Customer Satisfaction External customers include dealers, who buy products to sell to others, and ultimate customers such as you and me, who buy their products for their own personal use. Internal customers are individuals and units within the firm that receive services from other individuals or units. One goal today is to go beyond simply satisfying customers to “delighting” them with unexpectedly good products and services. BRAC Business School BRAC University

Sample Questions What are the functions of Management? Give examples Discuss the roles of a manager while planning. Discuss the types of planning in an organization with examples. Mention the different levels of management. What kind of skills are required in each of these levels? Give examples. What is leadership? What should a leader must do? Discuss and give examples for each type of leadership. Discuss the importance of controlling and process of implementing it. What is the new criterion for measurement? How is it one of the most effective criteria. BRAC Business School BRAC University